Health Startups overtake in VC funding

Health tech leads funding, how Proximie is changing health tech, and more...

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Health Tech Takes the Lead

Health tech is now the most funded sector in Europe, overtaking fintech and energy in 2024 with $6.5 billion in investments.

What is driving this shift in the European startup market?

This Week’s Trends

  • EU health tech leads in funding

  • The surgeon startup changing health tech

  • $180 million surgery tech investment and more


    Read Time 4 minutes

The Startup Trend
European Health Tech Funding

Health tech has become the most funded startup sector in Europe, surpassing fintech and energy with $6.5 billion in 2024 VC investments, achieving 70% of its funding in 2023 in just the first half of the year.

> EU-backed programs like the EIT Health Catapult have improved investor confidence in the sector.

> The increase in healthcare M&A deals is driving investment volumes and valuations across Europe.

💡The uptick in Health tech funding is linked to the increase in AI-centric health care, with AI investments representing over 10% of total VC funding this year in Europe.

Startup feature
How a Surgeon’s Vision Became a Unicorn

Proximie, a health tech startup valued at over $1 billion, is changing the way surgeries are performed. Founded by Dr Nadine Hachach-Haram in 2016, the company uses augmented reality (AR) to let surgeons virtually collaborate and assist in operations between hospitals.

What started as a vision to improve access to quality surgical care has grown into a global platform making surgery smarter, more connected, and accessible.

From Inspiration to Innovation

Dr Nadine Hachach-Haram’s journey to founding Proximie was shaped by her early life experiences. Born in San Diego and raised in Lebanon during a time of conflict, Nadine saw firsthand the devastating impact of inadequate medical care. She pursued a career in reconstructive surgery and found that access to safe surgical care in developing countries was non-existent.

“How can two-thirds of the world's population struggle to access surgery?' Technology could be the enabler and force-multiplier to address that gap.”

This frustration sparked the idea for Proximie—a platform that could bridge the gap by connecting surgeons worldwide to share their expertise in real time.

Scaling the Vision

With no prior experience in building a startup or raising funds, Nadine initially considered Proximie as a research initiative. She applied for grants and used personal savings to kickstart the project. A turning point came in 2016 when CNN featured Proximie, leading to a significant rise in interest from investors.

“My LinkedIn was blowing up with messages asking if we were fundraising. That was the moment I realized the idea was worth really going for ”

This exposure helped her secure the first significant round of funding in 2018, allowing Proximie to begin scaling.

Proximie’s ability to integrate seamlessly with existing healthcare systems, combined with Nadine’s credibility as a surgeon, helped build trust with early investors. By 2020, the company had raised $38 million in Series B funding, which fueled its growth across multiple markets.

"I started out honestly with no experience in raising money or building businesses, but I was doing this from a place of purpose."

In 2022, Proximie secured an additional $80 million in a Series C round, bringing its total funding to over $100 million. This influx of capital enabled the company to rapidly expand its reach, with Proximie now used in over 800 hospitals across 60 countries, supporting more than 80,000 surgeries.

Transforming Surgery With Tech

Proximie is both a tool that makes surgeries more accessible, as well as a data-driven ecosystem for improved surgical outcomes. By collecting and analyzing data from over 80,000 surgeries Proximie helps standardize procedures, improve outcomes, and accelerate the adoption of new techniques.

“Proximie was never just about connecting surgeons; it was about creating a digital operating system that could improve care for patients everywhere, no matter where they are”

Backed by significant investments from SoftBank and British Patient Capital, Proximie is now focused entirely on scaling its technology to more hospitals and increasing its ecosystem of data and collaborative surgeries.

“I try to stay close to my mission and never lose sight of the impact I want to create. Building a startup is a marathon, not a sprint.”

Headline News
This Week In Startups ✍️

Founders

> Caresyntax, a Berlin-based AI surgery tech startup raises $180 million from investors including BlackRock.

> Reliant AI, a gen AI data analytics startup emerges from stealth with $11.3 million in funding to transform life science data analysis.

> BeyondMath, a Cambridge-based AI startup secures $8.5 million for its multiphysics simulation platform.

Investors & VCs

> UVC Partners, a German B2B, deep tech VC firm, has closed its fourth fund of €250 million.

> How Europe can improve its role in venture capital and its market integration.

> Here are 11 top-performing Dutch venture capital funds by IRR.

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Cheers,

Odin Lund & Hari Mohandas

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